Comments on: The E.A.S.: Bad for Airlines, Good for Me http://briansullivan.blogs.foxbusiness.com/2008/08/07/the-eas-bad-for-airlines-good-for-me/ FOXBusiness Fri, 20 Nov 2009 18:24:21 -0500 http://wordpress.org/?v=2.8.5.2 hourly 1 By: Corey http://briansullivan.blogs.foxbusiness.com/2008/08/07/the-eas-bad-for-airlines-good-for-me/comment-page-1/#comment-673 Corey Thu, 14 Aug 2008 15:04:49 +0000 http://briansullivan.blogs.foxbusiness.com/?p=66#comment-673 Free market means the freedom to enter into contracts. "The airlines enter into the two year contracts for service" is a direct quote from above. Did the government change the terms of the contracts, or did the airlines simply lose a bet on costs for these routes? This particular issue is not government run amuck, it is poor risk taking by the airlines. I am sure that a significant drop in prices for fuel would not have resulted in the government suddenly revoking the contract. No, the airline would have reaped "windfall" profits and people would complain about that, saying corporations were taking advantage of the public. (OK, English majors, go to town on one sentence with (at least) 3 tenses.) Free markets result in sharp losses and sharp gains when risks are taken. This will, in 2 years, be a testament to free markets as the government greatly alters EAS contracting or airlines simply end their participation in EAS routes. Free market means the freedom to enter into contracts. “The airlines enter into the two year contracts for service” is a direct quote from above. Did the government change the terms of the contracts, or did the airlines simply lose a bet on costs for these routes?

This particular issue is not government run amuck, it is poor risk taking by the airlines. I am sure that a significant drop in prices for fuel would not have resulted in the government suddenly revoking the contract. No, the airline would have reaped “windfall” profits and people would complain about that, saying corporations were taking advantage of the public. (OK, English majors, go to town on one sentence with (at least) 3 tenses.)

Free markets result in sharp losses and sharp gains when risks are taken. This will, in 2 years, be a testament to free markets as the government greatly alters EAS contracting or airlines simply end their participation in EAS routes.

]]> By: Ian Woolley http://briansullivan.blogs.foxbusiness.com/2008/08/07/the-eas-bad-for-airlines-good-for-me/comment-page-1/#comment-664 Ian Woolley Thu, 07 Aug 2008 18:39:44 +0000 http://briansullivan.blogs.foxbusiness.com/?p=66#comment-664 Well, once again right on the money. The EAS program is designed to ensure affordable air service to markets that don't make economic sense to an airlne in the buisiness to earn a profit. Once upon a time, airlnes were able to subsidise these routs from the profits made in the mainmarkets. Unfortunately, today those main markets are not coverung their own costs, let alone being able to subsidise EAS. Get used to driving (if you can afford the gass) because as soon as an airline can get out of these markets, short of declaring bankruptcy, it will be gone. Well, once again right on the money. The EAS program is designed to ensure affordable air service to markets that don’t make economic sense to an airlne in the buisiness to earn a profit.
Once upon a time, airlnes were able to subsidise these routs from the profits made in the mainmarkets.
Unfortunately, today those main markets are not coverung their own costs, let alone being able to subsidise EAS. Get used to driving (if you can afford the gass) because as soon as an airline can get out of these markets, short of declaring bankruptcy, it will be gone.

]]> By: Dave Swiderski - Penn State University http://briansullivan.blogs.foxbusiness.com/2008/08/07/the-eas-bad-for-airlines-good-for-me/comment-page-1/#comment-662 Dave Swiderski - Penn State University Thu, 07 Aug 2008 18:12:58 +0000 http://briansullivan.blogs.foxbusiness.com/?p=66#comment-662 Brian, While you are in Michigan, you have to stop and visit Madonna's father's winery (Ciccone Vineyard and Winery) in Sutton's Bay. Their White Merlot is fabulous! You might even catch Madonna there for a visit too. Brian,

While you are in Michigan, you have to stop and visit Madonna’s father’s winery (Ciccone Vineyard and Winery) in Sutton’s Bay. Their White Merlot is fabulous! You might even catch Madonna there for a visit too.

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